Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
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I want to speak in support of amendments 1, 3 and 8 and new clause 1. The Minister knows, as certainly it is no secret, that the Scottish National party absolutely does not support the decision to leave Euratom. We have been told that it is essential and a requirement that we do so, and that we are where we are, but I urge the Minister—as I have before—to explore to the fullest possible extent the legal advice that is, at best, differing and conflicting, as that may be the best way to go.

The Prime Minister has told us, and the Minister has reiterated it, that the UK Government seek a close relationship with Euratom. I suggest that the closest relationship would be to remain a member, but if we cannot and if the Minister stretches every sinew, explores every avenue and finds that we cannot remain a member of Euratom, we want to remain an associate member, as has been pointed out. We have heard that Switzerland became an associate member of Euratom in 2014, under article 206. That arrangement could be a way in which we can continue to access funding for nuclear research.

Although safeguard regulations are certainly reserved to the UK Parliament, the Minister will know that there are areas of regulation that are devolved to the Scottish Government, for example the regulation of waste and emissions from nuclear sites. When talking about nuclear safeguards I do not feel that we can properly and safely artificially separate those areas, so I hope that the Minister will involve the Scottish Government at every stage of the Euratom negotiation process to ensure, whatever the deal, outcome or final situation, that the deal also works for Scotland.

With regard to amendment 8, we must be mindful—I am sure that the Minister is—that critical pillars of scientific research and medicine must be considered as an important part of the Bill. Following our departure from Euratom—if that happens—the UK will have to strike new regulatory agreements with the EU and other trading partners, to continue to import nuclear materials. That will only be possible with a new regulatory system. I am tempted to quote the expert advice from Tom Greatrex, the chief executive of the Nuclear Industry Association, and of course a former Member of Parliament. He points out that:

“While medical isotopes are not classed as special fissile material and so not subject to safeguarding provisions, it is not accurate to say that Euratom has no impact. They are subject”

to the treaty.

He is echoed by the president-elect of the European Association of Nuclear Medicine, who tells us:

“The transport of isotopes across borders is regulated so it is not something you can send in a package”.

There is room for question and to search for more clarity, which I hope the Minister can provide. We need to know the strategy for the trading and transportation of nuclear materials, such as fuel for reactors and isotopes. EU officials and independent experts have stated that

“these isotopes would be subject to wider Euratom rules on the trade and transportation of nuclear materials after Brexit.”

I hope that the Minister will take the concerns addressed in the amendments on board. I am very interested to hear what he has to say.

Alex Norris Portrait Alex Norris (Nottingham North) (Lab/Co-op)
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I said earlier that I do not think there is public energy behind us not participating in Euratom in some way. Similarly, in our discussions, neither the experts we had in front of us nor hon. Members said that leaving Euratom is desirable and that we should actively choose to do it. Rather, it is a necessity of circumstance, and this Bill is a contingency to cover such an event.

I am in favour of this cluster of amendments and the new clause, because it is important that we provide evidence that we have taken every step to try to maintain what is currently a successful relationship. In doing so, we will resolve the debilitating difference of legal opinion on this matter, as my hon. Friend the Member for Southampton, Test characterised it.

The Minister said clearly that we are leaving Euratom, but on Second Reading of the European Union (Withdrawal) Bill, the right hon. Member for Clwyd West (Mr Jones), who at that point was a member of the ministerial team for the Department for Exiting the European Union, said:

“Triggering article 50 therefore also entails giving notice to leave Euratom.”—[Official Report, 1 February 2017; Vol. 620, c. 1131.]

I believe there is a difference between saying we are leaving and saying we have to leave, as, in effect, the right hon. Gentleman said. The Minister may say that that is a distinction without a difference. However, in the first sitting of this Committee, we took evidence from two senior lawyers in this area—Jonathan Leech and Rupert Cowan from Prospect Law—and I asked them whether triggering article 50 necessitated, as the right hon. Gentleman suggested, leaving Euratom as well. Jonathan Leech said, “No”, and Rupert Cowan said, “Absolutely not.” Jonathan Leech continued to say:

“The advice would be that you do not have to accept this and it may not be in your interests to do so.”––[Official Report, Nuclear Safeguards Public Bill Committee, 31 October 2017; c. 12, Q23.]

This is clearly contested space.

We subsequently heard, as my hon. Friend said, that perhaps it is something to do with the Government’s preferred future approach to the European Court of Justice. Perhaps they think we ought to escape immediately anything that seems to have some sort of tie to the ECJ. That may well be the view of the Prime Minister and No. 10, but it is considerably different from what was said on Second Reading of the European Union (Withdrawal) Bill, which is that we have to do it.

Leaving Euratom is a political choice and, as such, ought to be debated in the usual way. We should make a democratic decision about it. The best way for us to do that, as Members across the Committee have said, is to carry on with this contingency Bill, but in doing so prove the case either way. I am perfectly willing to accept that there will be conflicting legal advice. A Minister has been very clear in this place that he believes it to be absolutely one way, and this Committee has heard evidence to the complete contrary. The best way to resolve that is for us to see the information and talk about it. Critically, as these amendments require, future Ministers should lay before both Houses of Parliament what advice they have taken, what course they have chosen and why they have had to do that. If they do that, I believe that both the House and the public will have confidence that that very difficult, possibly traumatic, decision is the only one that could have been taken.

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Lord Harrington of Watford Portrait Richard Harrington
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I thank hon. Members for their contributions on amendments 4, 12 and 13. I accept that the amendments try to address consultation on the implementation of the nuclear safeguards regime that the Bill will establish. I will come to that shortly.

I would like to address the consultation in respect of the ONR’s capacity, raised in amendment 4. I understand that hon. Members seek confirmation that the ONR, which will be the regulator, has the resources necessary to take on extra responsibility for civil nuclear safeguards in addition to all its other functions, and that sufficient assessments have been made of the impact of the new regime.

In response to the original question put by the shadow Minister, the hon. Member for Southampton, Test, I can put his mind at rest and confirm that a full impact assessment is being undertaken and will be published in the coming weeks, certainly well before Report stage. I accept everything that the hon. Member for Wolverhampton South West said, with her interesting comparisons to her previous occupation. I remind her that we are not talking about safety—that does not make it less important—as that is covered by a completely different regime, but her points are well taken; particularly about the impact assessment.

The impact assessment will assess the main options for implementation of a domestic nuclear safeguards regime, which would happen after withdrawal from Euratom.

Patricia Gibson Portrait Patricia Gibson
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Does the Minister have any concerns that nuclear regulation in the United Kingdom will face a post-Brexit skills crisis, as it prepares to take on extra responsibilities that it currently shares with its European partners at the same time that many of its current inspectors are ageing and approaching retirement?

Lord Harrington of Watford Portrait Richard Harrington
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The retirement of current inspectors—obviously not in safeguards—happens all the time and it is part of the general recruitment process. As for new inspectors for the new safeguards regime, the Department has regular and extensive discussions with the ONR, as one might imagine given the context. The recruitment process is initially for about 15 people; I accept that including other staff that comes to 32. I cannot quite remember the shadow Minister’s words, but I accept the fact that recruitment does not happen by just saying, “You, you and you.” That may be done in certain political parties’ recruitment process for prospective candidates, but I accept the fact that something like this requires a very serious, qualified person.

I am pleased to hear from my hon. Friend the Member for Copeland that she believes there is a pool of people that is, at least partially, already working in the nuclear industry, but the Office for Nuclear Regulation are far from fools when it comes to this sort of thing. They have started phase one of their recruitment process and will continue that process. They needed the financial clearance, which came according to the rules after Second Reading, and I thank all hon. Members here and in the House generally for their support for that. The budget and everything is agreed with the ONR. As has been mentioned, it is not simply a question of recruitment, although that is important, but IT, premises and all the other infrastructure that goes with that.

I hope I have dealt with the impact assessment question.

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Lord Harrington of Watford Portrait Richard Harrington
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That is a typically sensible suggestion from the hon. Gentleman. I will give that some consideration as to form or whatever, if he will bear with me. I remind hon. Members that the Bill already requires the Government to consult with the ONR and other persons that the Secretary of State considers appropriate. I know it may or must seem appropriate, but the intention is to consult widely.

On ONR capacity, which is the core of many of the amendments, I recognise the importance of transparency and the need for Parliament to be assured that the ONR is adequately resourced to set up the absolutely critical domestic civil nuclear safeguards regime. I have continually stated that we will allocate to the ONR the funding necessary to set up the regime. We have been transparent about the costs and resources of setting up the regime. Current estimates of the set-up costs are set out in the explanatory notes to the Bill. They are under my file, but from memory they are about £10 million in set-up costs and about that annually, which is roughly the cost of Euratom at the moment to perform the same function. I know the figures are approximate, but they give hon. Members a perception of the scale.

The relevant section is “Financial implications of the Bill”, which I will read now, in case hon. Members do not have it in front of them—they will not have to scurry around for it. It says:

“The public expenditure resulting from the Bill are the cost of the establishment and operation of the new regime by the ONR in line with the regulations that will be made under the powers in the Bill.”

That is the £10 million. It continues:

“The costs to set up a UK domestic safeguards regime (which remain subject to further analysis) are potentially up to £10m. This would include procurement of a new IT system, recruitment and training of…inspectors and strengthening institutional capacity to deliver the project. This cost can be met from within BEIS’s Spending Review allocations. The cost of any equipment currently in the United Kingdom but belonging to Euratom is a matter currently under negotiation with the European Union.”

Ideally, we will want to purchase the kit: the cameras, recording equipment and other electronic surveillance equipment and so on. It continues:

“The regime is also likely to involve an ongoing cost of around £10m a year—

sorry, I have said this before, but just to confirm—

“which is in line with the United Kingdom’s current cost of Euratom safeguards activity in the United Kingdom.”

The Office for Nuclear Regulation has also been clear, in evidence to the Committee, and to the Department, about the resources required. The amount has not just come out of the blue. We are working closely together to ensure that the needs of the ONR are met. My Department has already agreed to provide funding for initial work undertaken by the ONR on scoping and additional recruitment.

The ONR currently anticipates that the next tranche of recruitment will be in 2017. To correct myself, when I previously referred to the beginning of 2017 I was mixing it up with the current round; it will be at the end of 2017. That is what it has asked us for; it is not the Government imposing anything or saying we think it is how it should proceed. It is committed to doing whatever recruitment is necessary for what it knows it has to do. I hope that I have assured hon. Members that we are working closely with ONR to ensure that sufficient resource and capacity will be in place to carry out the work needed. It is unnecessary to add to the Bill the level of detail in the amendment. It would not make any difference to a programme that is already costed and proceeding.

On amendments 12 and 13 and the issue of consultation more broadly, the Opposition made some valid points, and I agree wholeheartedly that, as was said on Second Reading as well as today in Committee, consultation is vital in the development of any regulatory system—and even more so when it concerns something of such national importance. As the hon. Member for Nottingham North said, what is important may not be the thing that makes newspaper headlines; the general public may not realise something is important, but here we can all agree that this matter is critical.

I hope that Members on both sides of the Committee will agree that there have been great improvements in recent history in the working relationship between all Governments—I am not making a point just about the present Government—and the nuclear industry regulator, as well as with a wide range of stakeholders across the industry. Probably the main stakeholder, of course, is Lord Hutton, the former Secretary of State in the precursor Department to mine—and, in fact, nearly every other Department; it is very much a cross-party kind of industry. People listening to our proceedings might have felt that the Government had a disagreement with the two unions that gave evidence, but in reality there is far more in common between us—as there is in Committee today—than there are differences.

A good relationship is important, but I accept that that does not stand in the place of appropriate legislative mechanisms for consultation: I do not think that it is just a question of a few people getting around a table and having a meeting. I accept that consultation must be statutory; and, quite properly, it is. Future regimes or Governments, and future stakeholders, might have different views about each other. A Government who did not want a nuclear industry might behave differently, and so might a nuclear industry that did not want such a Government. I accept that things must be formalised.

The Bill therefore places clear requirements on the Government to consult. We have already made it clear that the development of the regulations that underpin the Bill will be subject to detailed consultation with the regulator and industry. Hon. Members will be aware that it is policy for such consultations to be made public, and we intend to do so in this case.

Patricia Gibson Portrait Patricia Gibson
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What kind of consultation will the Minister undertake with the Scottish Government, and how inclusive will the process be, given that, as I have said before, with regard to regulation, waste and emissions are the responsibility of the Scottish Government?

Lord Harrington of Watford Portrait Richard Harrington
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If the hon. Lady will bear with me, I would much rather write to her on that subject, because the point is very specific and I do not have the answer to hand. It is a valid question, and she is perfectly entitled to ask it. If the Committee will bear with me, I can perhaps drop her a line or, if she would prefer, have a meeting with her on it. I know the point is important, but it is one point of many. It is not unreasonable, and I am sure she will chase me up on it if I have not responded by Monday, but I promise to do my best.